Gold Marketwatch – Tuesday 02/06/09

Market Commentary
Gold opened at 981.00/982.00 and ticked marginally lower, finding good support near 980.00. The dollar continued to soften as the session progressed and gold gathered momentum. It was well bid on the back of investor demand, climbing to an intraday high of 987.00/988.00. The metal could not sustain this level very long as it retreated below 980.00, reaching 978.25/979.25. The market went extremely quiet and gold was stuck in a holding pattern, finally settling at 982.25/983.25.

Technical Commentary
Gold moved higher today to current 982 and thus keeping the bullish trend in tact. Yesterdays high of 988 is the next resistance ahead of target 1006. Suggest Gold bulls lift their trailing stop loss to a close below 966.The strength of this up move is impressive with steady demand for Gold on every dip.